Business Ethics and SRI Literature review Example | Topics and Well Written Essays - 1500 words

Business Ethics and SRI - Literature review illustrationThis emerging phenomenon is known as socially Responsible Investment (Hicks,2003 Schueth, 2003) Socially Responsible Investment (SRI), to a fault known as honest investment, is an investment discipline that in addition to the risk and returns issues in investment, takes into calculate social or environmental issues. The difference between SRI and pompous investment is the employment of specific investment strategies. The purpose of such strategies is to select or exclude certain assets from investment portfolio. (Renneboog et al., 2008,p. 1723). It simply means that conventional investment strategies are considered naturalhaving financial return on investment at the core. However, SRI strategies are every socially sensitive or socially dictating(Hicks,2003 Schueth, 2003) SRI has three major distinctive techniques, which may overlap or follow one another. These are screening, activism, and cause-based investment( Spark and Cowton,2004 Vivers, 2007) . Further, SRI may be carried out at individual as well as institutional level. Individuals normally develop mutual funds whereas institutions execute it through appealing foundations and pension funds. Since its modern emergence, SRI, its strategies, its nomenclature and its definition have been under strong debates ( Spark and Cowton,2004 Schueth, 2003 Hicks,2003). ... At the check of this review , I shall present the growing importance of SRI at international level. 2. Definition and basic nameinology 2.1. Business Ethics In current literature of business ethics, there are two major streams. One expects that business shall not be immoral enterprise and the encourage that consider the morality and egocentrism at certain point sometime are opposite. ( Hicks,2003). The first group assume that business is amoral whereas second argue that if it is amoral it is immoral ( Hicks,2003).In current stream of business ethics literature second group is suitabl e dominant and either calls for the practice of personal values or even urges the investors to play an active usance for the implementation of those values into the businesses.( Hicks,2003 Schueth, 2003, Vivers, 2007). 2.2. SRI and Other Terms There are various terms representing the concepts of business ethics. For instance, Socially Responsible Investing , social investing, socially aware investing, ethical investing, mission-based investing, and double-bottom line investing.. These terms has been used interchangeably in literature (Pan and Mardfin ,2001 Schueth, 2003Spark and Cowton,2004). However the two most common terms are ethical investing and Socially Responsible Investment (Spark and Cowton,2004, p 46). Term ethical investment is relatively honest-to-god one and it reflects the fact that the movement was initially religiously motivated and churches played a vital design in the development of earliest ethical funds in UK, USA and Australia(Schueth, 2003 Spark and Cowton, 2004). Later on, the term has gradually been replaced by Socially Responsible Investment (SRI). Many people have reservation on the use of